USD will continue to rise during 2016 – Wells Fargo

FXStreet (Córdoba) – Analysts from Wells Fargo, explained in the Monthly Economic Outlook report that the US dollar will continue to rise during 2016, but not as much as it did during 2015.

Key Quotes:

“Given the rise in the funds rate and continued uncertainty over global growth, we anticipate the dollar’s value will continue to rise in the year ahead, although the extent of the gain will be more modest than in 2015.”

“Over the past year, the sharp rise in the dollar has been concentrated in three of our major trading partners—Canada, Mexico and the Eurozone. Meanwhile, the dollar appreciation against the currencies of China and Japan has been quite modest. Yet the driving factor for the U.S. trade position has been global growth and the disappointing outlook for growth limits trade improvement.”

“Foreign demand for U.S. financial assets, including agencies, corporates and U.S. Treasury debt, has been very positive so far. However, there is a risk we must monitor that foreign interest, especially from China and Brazil, may drop off sharply and thereby raise long-term rates above a level consistent with nominal GDP growth and Fed actions.”

Analysts from Wells Fargo, explained in the Monthly Economic Outlook report that the US dollar will continue to rise during 2016, but not as much as it did during 2015.

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